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2015 (8) TMI 845 - AT - Income TaxEntitlement to exemption u/s 10B - Held that:- There is a blending of tea in the present case of assessee and assessee before AO during remand proceedings have proved the complete procedure explaining that there is blending of tea. This is exactly in line with the order of ITAT Kolkata Special Bench in the case of Madhu Jayanti International Ltd (2012 (7) TMI 531 - ITAT KOLKATA) wherein held that the assessee who are in the business of blending and processing of tea and export thereof, in 100% EOUs are manufacturer/ producer of the tea for the purpose of claiming exemption u/s. 10B. Hence, respectfully following it we feel that issue is now covered against Revenue and in favour of assessee Disallowance commission payment - CIT(A) deleted the addition - Held that:- Issue is covered in favour of assessee and against Revenue exactly on identical facts and circumstances of Hon'ble jurisdictional High Court in the case of CIT v. Rajarani Exports P. Ltd.(2013 (5) TMI 410 - CALCUTTA HIGH COURT) wherein considered that assessee made payment of commission in consideration of services rendered. The CIT(A) held that the commission on export activity was fully disclosed in all correspondence and activities in relation to export, the commission was paid through banking channels with the Reserve Bank approval and it was paid pursuant to an agreement approved by the Government of India and the United Nations, that the payment of commission was for business consideration and there was no illegality in it, that besides this, nothing was brought on record to show that the transaction relating to payment of commission were not genuine or that the payments were excessive or unreasonable, that the Volker Committee report had discussed the utilisation of money by the recipient of the commission and stated that neither the assessee nor the Government of India was involved in parting with some of the funds so received as commission under a pact between the Iraq Government and the United Nations. - Decided against revenue.
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